Eurozone GDP up by 0.4 pct in Q1 2025: Eurostat

The EU's statistical office also reported that the economy of the European Union (EU) grew by 0.3 percent during the same period, on a quarter-over-quarter basis.

In the fourth quarter of 2024, GDP had increased by 0.2 percent in the euro area and by 0.4 percent in the EU, according to Eurostat.

Year-on-year growth for Q1 2025 stands at 1.2 percent for the Eurozone and 1.4 percent for the EU.

Among the larger economies, Spain led with a 0.6 percent increase, while France and the Netherlands disappointed with only 0.1 percent growth. Germany recorded a 0.2 percent rise, and Italy exceeded expectations with a 0.3 percent expansion.

Countries with the highest quarter-to-quarter growth rates include Ireland, with a 3.2 percent increase compared to 3.6 percent in Q4 2024. Hungary, by contrast, posted negative growth of -0.2 percent, down from 0.6 percent in the previous quarter.

"Eurozone GDP rose a better-than-expected 0.4 percent in the first quarter," said Peter Vanden Houte, chief economist for the Eurozone at ING. Vanden Houte attributed the economic growth to a surge in exports to the United States just before the introduction of higher tariffs.

He noted, however, that first-quarter GDP figures are "already ancient history" and offer limited insight into future economic performance.

Vanden Houte expects the next two quarters to reflect a stagnant economy, citing the negative impact of net exports, weaker consumption growth due to a rising savings ratio, and stagnant investment caused by increased uncertainty.

The economy might pick up in the fourth quarter of 2025, said Vanden Houte, with full-year growth for 2025 projected to reach around 0.7 percent at best.

Earlier it was reported that Eurozone industrial output had risen by 1.1% in February.